A MULTI-MILLION pound racecourse and leisure centre could be built in the North-East by 2005, a leading property developer revealed earlier this week.

Developer Lord Zetland said the new racecourse - which is expected to cost upwards of £100m - would be built at a 537-acre site around Dunsdale Farm, two miles south of Redcar.

The intention is that the current Redcar course will remain open until the new development is completed and all racing fixtures would then be moved to the new site.

It had been hoped that the new course would be open by 2003, but Lord Zetland revised that deadline and said it could be up and running by 2005.

He explained it had taken longer than expected to secure initial funding, but added that he was hopeful of securing the money to conduct a £3.5m feasibility study into the project in the next two months.

Lord Zetland - a 20pc shareholder in the existing course - said he was in the process of raising cash from the private sector and had already secured most of the cash needed for the feasibility study.

He gave a few clues as to what, aside from racing, could be at the new site. He said: "It certainly would not involve swings and roundabouts. One candidate could be a sophisticated indoor theme park.

"We would also look at the possibility of a health farm and a virtual reality history museum, but it's all early days.

"We intend to work extremely closely with the council."

The current site, which splits the seaside town in two and has been operating since 1872, would probably be redeveloped for housing.

Coun David Walsh, leader of Redcar and Cleveland borough council, said: "Obviously this project has to be seen in planning terms and it is early days."